Prabhudas Lilladher has issued a buy rating on Dalmia Bharat with a revised target price of ₹2,173, up from the earlier target of ₹2,079. According to the research report dated August 20, 2026, the brokerage expects the cement manufacturer to deliver strong volume growth driven by capacity expansion and market entry strategies.
The company is positioned for strong 11% volume CAGR over FY26-29E through strategic capacity additions. As reported by Prabhudas Lilladher, capacity is expected to reach ~70mtpa by end-FY28, including 5.2mtpa JAL assets, 12mtpa under commissioning in South/West, and one expected grinding unit in East. The long-term 110mtpa target remains directional and will be calibrated based on industry demand and leverage considerations.
Demand from the Southern region remains good, which may attract further capital investment, while the Eastern region is expected to witness increased activities over the long term. According to the brokerage's assessment, the company's entry into central markets and ongoing capacity additions in South/West provide strong positioning for sustained growth momentum.
Prabhudas Lilladher expects 14% EBITDA CAGR over FY26-29E despite near-term challenges. The stock is currently trading at 10.4x/9.4x EV of FY28/29E EBITDA. The revised target price of ₹2,173 values the company at 11x EV of September 2028E EBITDA, maintaining the bullish outlook on the cement manufacturer's expansion strategy.
Dalmia Bharat reported strong annual performance with revenue of ₹15,026 crore in FY26 compared to ₹14,233 crore in FY25, showing a 5.57% year-on-year increase. The company's operating profit surged 77.48% to ₹1,450 crore in FY26 from ₹817 crore in FY25, while net profit increased 65.52% to ₹1,157 crore. As of August 21, 2026, the stock was trading at ₹1,881.90, with a market capitalization of ₹35,585 crore. The company has demonstrated resilience with 14 times water positive status and targets to become 20 times water positive by 2025.
